Twitter Inc. Adopting the size that will protect from hostile acquisition offers, take steps to thwart the offer of the Elon Musk billionaire that is not liked to take a private company and make it a free speech fortress.
The Board regulates the shareholder rights plan, can be carried out if a party gained 15% of the stock without the previous consent, lasting for one year. The plan is trying to ensure that anyone who controls Twitter through the accumulation of open markets pays all the appropriate control premium shareholders, according to Friday’s statement.
Twitter imposes plans to buy time, according to someone who is familiar with this problem. The board wants to be able to analyze and negotiate any agreement, and may still accept it.
“The plan of rights does not prevent the Board to be involved with parties or accept the acquisition proposal if the board believes that it is the best interest in Twitter and its shareholders,” the company said.
Tesla Chief Executive Inc. On Thursday offered $ 54.20 per cash stock for Twitter, assessing social media companies of $ 43 billion. Musk, who said it was the “best and last” offer, has added a peg over 9% on Twitter since the beginning of this year. The Twitter Board met Thursday to review the Musk’s proposal to determine whether the company’s best interests and all its shareholders.
Toxic pill defense strategies allow shareholders that have the right to buy additional shares with discounts, effectively dilute the ownership of hostile party ownership. Pulc’s general pills among companies under API from activist investors or in hostile takeover situations.
Under Twitter’s plan, each of them will be entitled to the holder to buy, at the current exercise price, additional shares from general stocks that have market value when it can double the right price.
‘Like’
Included in the submission of musk securities revealing the offer Thursday morning is the text script that he sent to the company. In it he said, “This is a high price and shareholder you will like it.”
However, at least one prominent investor, said the offer was too low and the market reaction seemed to agree. Saudi Arabia Alwaleed bin Talal said the agreement was not “approaching intrinsic value” from a popular social media platform.
Speaking later on Thursday at the TED conference, Musk said he wasn’t sure he “will really get it.” He added that his intention also maintained “as many Shareholders as permitted by the law,” rather than maintaining the company’s sole ownership itself.
Twitter shares fell 1.7% in New York on Thursday, reflecting the market view that the agreement would likely be rejected or fall. Wall Street Journal previously reported a company based in San Francisco considering the defense of poison pills.
Musk first revealed the Twitter bet on April 4, making it the biggest individual investor. At the TED conference, he indicated that he had a plan B if the Twitter board refused his offer. He refused to decipher. But in his submission before that day, he said he would rethink his investment if the offer failed.
“If the deal doesn’t work, given that I have no trust in management or I believe I can encourage the changes needed in the public market, I need to reconsider my position as a shareholder,” Musk said.
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